Marion council locks a 48-month fixed electric-supply deal at 9.684¢ per kWh

Marion — The Marion City Council voted to approve a 48-month electric-supply contract with Direct Energy that fixes the city’s supply rate at 9.684 cents per kilowatt-hour, the council decided after a presentation from AGE, the city’s energy procurement adviser. The contract would lock that rate through June 2030.

Rob from AGE presented the bid results and described the contract as “a fully fixed rate,” noting the city’s annual electricity usage has dropped from a little over 9 million kilowatt-hours to just under 8.5 million kilowatt-hours, which he said likely reflects recent local solar installations. He told the council that Direct Energy was the lowest bidder and that the components making up the rate would remain locked for the contract term.

The administration compared the fixed offer to Ameren’s blended, variable rate; Rob explained Ameren’s seasonal pricing and why the weighted average in their packet differed from the fixed municipal-supply bids. Council members discussed options for 12-, 24-, 36- or 48-month terms and several said the 48-month option offered price stability. Mayor Absher moved to approve the 48-month Direct Energy option and the motion passed on a roll-call vote with the attending commissioners voting in favor and one commissioner absent.

Why it matters: locking a fixed supply price helps the city budget for electric costs and reduces exposure to near-term wholesale price swings, particularly as the municipality’s consumption changes with local generation. The contract will take effect as the city’s current supplier term expires in June, and staff said they will proceed with paperwork to finalize the award.

The council approved the contract by roll call; one commissioner was absent. The city manager and procurement staff will complete the contract paperwork and return any administrative items as required.